In the media
Boosting penalties to protect Australian consumers from
corporate and financial misconduct
TREASURY – 20 April 2018 - The Turnbull Government
is strengthening criminal and civil penalties for corporate
misconduct and boosting the powers of the ASIC to protect
Australian consumers from corporate and financial misconduct.
Today's reforms to ASIC's powers and penalties follow
recommendations made by the ASIC Enforcement Review Taskforce
(The Taskforce).
More...
Morrison references jail option for Royal Commission
miscreants
MEDIA - 19 April 2018 - The prospect of jail time for
miscreant financial services executives has been raised by the
Federal Treasurer, Scott Morrison, in the wake of Royal Commission
revelations with respect to AMP Limited.
More...
Consultation on regulations to protect client money in
the financial sector
TREASURY – 17 April 2018 - The Turnbull Government
has today released exposure draft regulations (the Regulations) to
support and improve the powers of the Australian Securities and
Investments Commission (ASIC) to enforce the new
client money regime which commenced on 4 April 2018.
More...
ASIC bans former Suncorp Financial Services financial
adviser for four years
ASIC – 17 April 2018 - ASIC found that Mr
Grubwinkler failed to act in his clients' best interests when
providing advice on superannuation and insurance.
More...
Former financial adviser permanently banned for
dishonest conduct
ASIC – 17 April 2018 - ASIC has permanently banned
Mr Grant Desmond Taylor, of Montmorency, Victoria from providing
financial services after finding he engaged in dishonest and
deceptive conduct towards his clients. ASIC also found that Mr
Taylor was not of good fame or character.
More...
RBA warns about superannuation risks
MEDIA - 16 April 2018 - Superannuation continues to pose
a limited risk to Australia's financial stability, says the RBA
– but its large size means it could exacerbate a market
shock.
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Financial planning 'doesn't have professional
standards', resisting reform
MEDIA – 16 April 2018 - Probably the biggest reason
the banking royal commission exists is because of the litany of
financial planning scandals which have cost many thousands of
people their life savings.
More...
Banking royal commission told 90% of financial advisers
ignored
MEDIA – 16 April 2018 - Australia's corporate
regulator has revealed 90% of financial advisers who provide advice
to self-managed super funds have failed to comply with the best
interests of their clients. The startlingly high figure was
revealed during the financial services royal commission.
More...
The royal commission was told $383 million in
compensation has been paid out due to dodgy financial planner
advice
MEDIA – 16 April 2018 - The number of financial
advisers is now 25,000, up from 18,000 in 2009, but only a third
have a university degree. In this second round of hearings, the
Royal Commission is looking at fees for no service, investment
platform fees, inappropriate financial advice, improper conduct by
financial advisers, improper conduct by financial advisers.
More...
Reform of the Financial Sector
(Shareholdings) Act 1998
TREASURY – 16 April 2018 - The Turnbull Government
is today releasing exposure draft legislation to relax the
restriction on ownership of banks and insurers as well as
introducing a new streamlined approval path under the Financial
Sector (Shareholdings) Act 1998 (FSSA) as
part of this Government's commitment to improving competition
in the financial sector).
More...
ASIC accepts enforceable undertaking from Commonwealth
Bank subsidiaries for Fees for No Service conduct
ASIC – 13 April 2018 - ASIC has accepted an
enforceable undertaking (EU) from Commonwealth
Financial Planning Limited (CFPL) and BW Financial
Advice Limited (BWFA), both wholly owned
subsidiaries of the Commonwealth Bank of Australia
(CBA). ASIC found that CFPL and BWFA failed to
provide, or failed to locate evidence regarding the provision of,
annual reviews to approximately 31,500 'Ongoing Service'
customers.
More...
ISA seeks to debunk retail fund claims
MEDIA - 12 April 2018 - Industry Super Australia
(ISA) has told the Productivity Commission
(PC) that retail funds should not be allowed to
hide behind their older member demographic or greater levels of
choice because no empirical evidence exists to support such claims.
More...
Consultation on ASIC fees-for-service draft
legislation
TREASURY – 11 April 2018 - The Turnbull Government
is committed to ensuring that ASIC has the resources and powers it
needs to combat misconduct in Australia's financial services
industry and bolster consumer confidence in the sector. The
Government has today released draft legislation on the second phase
of the ASIC industry funding model - the introduction of ASIC
fees-for-service.
More...
AIST announces new president
AIST – 11 April 2018 - The Australian Institute of
Superannuation Trustees (AIST) has announced the
appointment of Catherine Bolger as its new President.
More...
ASIC reveals 6 key aspects of a 'good' financial
system
MEDIA – 10 April 2018 - The financial services
regulator has outlined what it believes are the six "key
components of a good financial system".
More...
AMP admits it misled ASIC over financial advice
fee-for-no-service
MEDIA – 10 April 2018 - AMP says it deceived the
corporate regulator over fees charged to thousands of customers who
were not provided with the financial advice they were being charged
for.
More...
ASIC maintains scrutiny of SMSF auditors
MEDIA – 10 April 2018 - The Australian Securities
& Investments Commission (ASIC) has
disqualified two self-managed super fund (SMSF)
auditors for a failure to report legislative contraventions and
breaches of various requirements.
More...
Millennial super fund Spaceship fined for misleading
claims
MEDIA – 10 April 2018 - Spaceship, a superannuation
fund targeting millennial investors, has been fined by the
corporate regulator over misleading claims in its marketing. ASIC
has penalised super fund Spaceship for statements made about the
investment strategy of one of its portfolios, 'GrowthX', on
its website in 2017.
More...
In practice and courts
Recommendations made by the ASIC Enforcement Review
Taskforce (The Taskforce), 20 April 2018
The Government has agreed, or agreed in principle, to all
50 of the Taskforce recommendations and will prioritise the
implementation of 30 of the recommendations. The remaining 20
recommendations relate to self-reporting of breaches, industry
codes and ASIC's directions powers, which will be considered
alongside the final report of the Royal Commission into
Misconduct in the Banking, Superannuation and Financial Services
Industry. The Government's full response to the Taskforce
Report can be found on the Treasury
website.
Consultation: Financial Sector
(Shareholdings) Amendment (Relaxing Ownership Restrictions) Bill
2018
This consultation seeks stakeholder views on the exposure
draft of the Financial Sector (Shareholdings) Amendment
(Relaxing Ownership Restrictions) Bill 2018 and related
explanatory statement. Submissions are due by 4 May 2018. The
exposure draft of the legislation is available on the Treasury
website (16 April 2018).
ASFA Submissions
Submission Australian Securities and Investments
Commission (ASIC)
Response to Consultation Paper 298: Oversight of the
Australian Financial Complaints Authority – update to RG
139. 06 April 2018:
Full Submission
Current Inquiries - Economics Legislation
Committee
Consumer protection in the banking, insurance and financial
sector
Status: Referred: 29 November 2016. Reporting Date: 28 March
2018.
On 14 February 2018, the Senate granted an extension of time to
report by 26 June 2018.
Cases
SAS Trustee Corporation v Rossetti
[2018] NSWCA 68
Appeal allowed JURISDICTION – whether Supreme Court
has jurisdiction to review STC decisions under the Police
Regulation (Superannuation) Act 1906 (NSW), s10B pursuant to
Superannuation Administration Act 1996 (NSW), s88 –
whether jurisdiction vested in District Court pursuant to
Police Regulation (Superannuation) Act, s21(1).
Board of Trustees of the State Public Sector Superannuation Scheme
v Gomez [2018] QCA 67
The Board's appeal is dismissed. Mr Gomez's
cross-appeal is dismissed.
EQUITY – TRUSTS AND TRUSTEES – PROCEEDINGS BETWEEN
TRUSTEES AND BENEFICIARIES OR THIRD PARTIES – where the
respondent/cross-appellant claimed a total and permanent
disablement (TPD) benefit under the superannuation
scheme administered by the appellant/cross-respondent – where
the claim for a TPD benefit under the superannuation scheme was
rejected on the basis the claim did not satisfy the definition of
TPD – where the trial judge ordered a reconsideration of the
Board's decision to decline payment – whether the
decisions made by the Board and the Board's delegate were open
on the evidence – whether the Trustee's duty to give
properly informed consideration was met – whether the
delegation to the Board's delegate was effective.
APPEAL – PRACTICE AND PROCEDURE – QUEENSLAND –
POWERS OF COURT – COSTS – where costs were awarded on
the basis that the best outcome the respondent/cross-appellant
could achieve was remitter back to the Trustee – where the
trial judge considered costs were unnecessarily incurred in
preparation for trial.
Williams v IS Industry Fund Pty Ltd
[2018] FCA 529
SUPERANNUATION – appeal against the Superannuation
Complaints Tribunal – whether there was an
'interdependent' relationship – whether there was
jurisdictional error – no such error – appeal
dismissed. Superannuation (Resolution of Complaints) Act
1993 (Cth) ss37(6), 46. Superannuation Industry
(Supervision) Act 1993 (Cth) ss10, 10A. Superannuation
Industry (Supervision) Regulations 1994 =(Cth) reg
1.04AAAA(1).
Corkhill v Commonwealth of Australia (No 3)
[2018] ACTSC 87
There be judgment for the defendant. SUPERANNUATION
– PUBLIC SERVICE SCHEMES – Availability of public
service schemes to temporary Commonwealth employees – no
statutory duty to inform every potentially affected employee as to
their eligibility – Superannuation Act 1922 (Cth)
– Superannuation Act 1976 (Cth) –
Superannuation Act 1990 (Cth).
TORTS – NEGLIGENCE – Duty of care – claim of
negligent misrepresentation – whether alleged
misrepresentation and negligence arose from representations about
operation of superannuation schemes – claim not made out.
Legislation
Commonwealth
Bills assented
ASIC Supervisory Cost Recovery Levy Amendment Bill
2017
Assent Act No: 24 11 April 2018 - Introduced with
the Treasury Laws Amendment (2017 Measures No. 5) Bill
2017, the bill amends the ASIC Supervisory Cost Recovery
Levy Act 2017 to add benchmark administrator licensees to the
list of entities from which the Australian Securities and
Investments Commission may recover its regulatory costs.
Regulations
Superannuation (prudential standard) determination No. 1 of
2018
19 April 2018 - This instrument determines
Superannuation (prudential standard) determination No. 1 of 2018,
and revokes Superannuation (prudential standard) determination No.
3 of 2013 - Prudential Standard SPS 310 - Audit and Related
Matters.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
